Financing in Dallas>Question Details

Kyle, Home Owner in Dallas, TX

Have an opportunity to buy a house for $130K. Needs repair of $60-70K. Completed should bring around $275-290K. In the heart of North Dallas'

Asked by Kyle, Dallas, TX Wed Jun 13, 2012

As a first-timer, how should we go about purchasing, remodeling and reselling this property? Should I 'FLIP IT"? How does that work? By assignment?

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I would borrow the money with a fix up loan, leverage most of the amount, and if you are buying right you should be able to sell with a profit. Alot of banks will lend you the fix up amount on top of the purchase price and allow you to make the proper repairs. The carrying costs will be the entire leveraged amount per month. Let me know if I can get some contacts for you.

Jordan Zitoun
4697770878
0 votes Thank Flag Link Mon Jun 18, 2012
Hi Kyle,

Now that i see this question. Yes you should go ahead and connect with a hard lender. I have two contacts with hard lender in Dallas that I can share with you.

Before you make an offer, get preapproval and know what your monthly payment will be. As I have mentioned in my other tread - its usually 6months to up to a year. You need to do a very good job with time management so you can get your return in money. You need to ad the repairs cost, interest expense and property tax expenses all together as your cost to make sure this is a good flip. You also need to get with a realtor to get you comp reports to make sure 275-290k is still the going rate after rehab value as it changes all the time and its always the best to get a professional opinion to protect your investment.

You can email me at dixondfw@gmail.com. I have worked with many investors in North Dallas and I can help you every step of the way.

Dixon
Realtor
JP and Assocaites
http://www.findyourtexashome.com
dixondfw@gmail.com
214-519-9493
1 vote Thank Flag Link Wed Jun 13, 2012
That soulds like a big project for a first timer. Numbers work if those are the right number. Be very very cautious on the numbers wholesalers distribute. They almost never include all the closing costs they are asking you to pay, which are both your normal buyer closing costs and usually the seller closing costs as well.
Then I most often see them underestimate the repairs costs.
Then the ARV numbers they use are often inflated.

That's not every wholesale, but I get the emails every week from lots of wholesalers and the numbers are often 5-10% better or worse consistently than the numbers I would give you.

My suggestion for a first time flipper is.....#1 Read the book FLIP before you ever even think about tackling one. http://www.amazon.com/gp/product/0071486100/ref=as_li_qf_sp_…

Then take on a small project the first time. Redo a $19,000 condo...or a $40,000 house, or one you can pay cash for up front. Do the paint and carpet and the minor repairs....and flip that one. Once you get experience with 2-3-4, then take on the bigger ones like this.

Most of these type of houses will never take an Assigns contract.
0 votes Thank Flag Link Sat Mar 2, 2013
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
Hi Kyle,

Congratulations you came across a great opportunity that you can have under contract with an approximate equity of $150,000. Please keep in mind cost of repairs is subjective to who’s repairing it.

When you minus $130 – $280 (average sale) = $150 equity

I suggest wholesaling the deal at 3-10% of equity spread.

If you have a deal to be funded, please feel free to contact our preferred Lender:

http://www.clearvisionrealty.com/private-money-app.asp

Normalina Martin
Licensed Real Estate Broker
Clear Vision Realty & Associates
"We Solve Ordinary Real Estate Situations in an Extraordinary Way"
407-796-1496
0 votes Thank Flag Link Fri Mar 1, 2013
I work for Universal Acceptance, a 26 year old local company. We provide all types of business financing including down payment loans, expansion, start up, SBA loans and unsecured signature loans. We have been providing creative financing for many years.

We have a very simple program that can provide you with a loan, unsecured, from $5,000-$250,000. We provide stated, no document business loans for start up ventures as well as investment property loans. We consider someone who buys an investment property to be in business. You would be able to finance the repairs/upgrades.

You should have at least a 620 credit score but higher is better. We do allow a co-signer so even if the credit score isn't perfect we would still love to talk to you.

A couple of notes: we base the loan completely on your credit. Some of the things that will be looked at are debt ratio, how long your credit history is and if you have a lot of new credit. We have to feel you have the ability to repay the loan. Also, we can't loan to those that have had bankruptcies. This is not a hard money loan it is a business loan. This is basically a stated loan and as you know there is nobody doing those anymore.

If you or someone you know could use a loan for a home, business expansion, operating capital, business startup or for almost anything let us prove to you just how good we really are. You're welcome to contact me anytime.

Hope to work with you soon,

Dominique Wilder
Universal Acceptance
559-375-2512
dominique@emailua.com
0 votes Thank Flag Link Thu Jul 26, 2012
hey I think you should check out http://www.NewWestern.com. They deal with these kind of properties all the time.
0 votes Thank Flag Link Wed Jul 11, 2012
we do those for investors.
if your not using our loan to live in house i'm interested.

we do up to 65% ARV (after repaired value)

Urban Coyote Funding
http://www.texasrehabloan.com

214 213 8967
0 votes Thank Flag Link Mon Jul 9, 2012
WOW ... contact my office ... you can make money .. or have a huge loss. I am a real estate investor AND work with other world wide

Contact my office today

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
Multimillion Dollar Sales Producer
972-699-9111
http://www.lynn911.com

Follow me on Facebook
http://www.facebook.com/lynn911dallas
0 votes Thank Flag Link Wed Jun 13, 2012
As a "First Timer", I wouldn't do it. Pick something smaller and that needs less work. How do you know what it will be worth when it is done? If your working with a Realtor already, you need to stick to their advice and not ours. You can pick any listing number you want but, it takes a buyer to make a sale happen and the buyer will determine what he or she will pay. However, it is your money and your credit. I find that most people will ignore good advice and make costly mistakes.

Kenny
kennyrealtor@yahoo.com
0 votes Thank Flag Link Wed Jun 13, 2012
Good find, if you have the funds or can raise the funds do it as long as comps support the ARV. Assignment may also be a good alternative, get it under contract to lock it up then fincas package for an investor figuring in a good assignment fee. Contact me as I work with investors and can offer reduced selling rates as a realtor when I represent you on the buying side which is where the seller pays my commission. Works out well for my fellow investors who are looking at the actual costs. Being an investor who has bought and held as well as rehab and flip I am extremely knowledgeable and can be an asset to your business. I hold a real estate, air conditioning license and manufactured home retailers license in the state of Texas. Contact me and put me to work for you.

Best Regards

John Greer
Realtor/ABR/SFR
United Real Estate Dallas
214-460-8381 Cell/Text
jgreer@unitedrealestatedallas.com
http://www.johngreerhomes.com
0 votes Thank Flag Link Wed Jun 13, 2012
Kyle,

That repair budget is a little on the high side but I would be open to looking at it. You will need a good sum of money down at closing for a larger deal like this as well. I typically lend 90% of purchase plus 75% of repairs. Give me a call if you want to discuss further.

Marco Bolado
210-286-8136
marco@entrustequityfunding.com
0 votes Thank Flag Link Wed Jun 13, 2012
If you want to remodel the home yourself, consider getting an FHA 203(K) loan. This loan will allow you to purchase the home and finance the repairs and renovations. You will be required to work with a licensed contractor so it also adds a layer of protection. Ask the loan officer if there are any restrictions on you re-selling the home after repairs are done. This would be more of a traditional 'flip'.

An assignment will bring you less money but much quicker. Basically, you get the house under contract as yourself "and/or assigns". Then you 'sell' the contract to someone who wants to do the repairs themselves and complete the 'flip'.
0 votes Thank Flag Link Wed Jun 13, 2012
I've lived in the area for most of my life. Know the market very well. I say first-timer although, a few years back found and assisted family in making an excellent purchase, started the remodel and sold prior to completion. Was a success. Over the years have passed on many opportunities due to ignorance of the avenues available to me. Have bought all 3 of my residences over 35 years By Owner. I am a contractor in attitude and personality. Tired of sitting on sidelines. Have passed on too many deals that seem to come my way. It's time to jump in.
0 votes Thank Flag Link Wed Jun 13, 2012
Sounds like a pretty big project for a first timer, but also sounds like a great find.

You have a couple of choices.
Make a little "wholesale" money, by putting the home under contract and flipping the contract to another investor. Wholesalers usually try to just make $1000 or $2000 in this situation. You probably only have a few days to flip it, so you can't get greedy with trying to make a lot more. Get in Get Out, make a little.

Second option is to buy it, rehab it, and resell it. You'll likely need a hard money loan to do this, but you stand to make more money. A lot more money, but also with more risk.

60-70K on rehab sounds very high to me. Any way to tighten your numbers? How confident are you on your before and after numbers?

Bruce Lynn
Keller Williams Realty
0 votes Thank Flag Link Wed Jun 13, 2012
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
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